{"id":60246,"date":"2024-03-19T15:44:06","date_gmt":"2024-03-19T07:44:06","guid":{"rendered":"https:\/\/www.hsu.edu.hk\/?p=60246"},"modified":"2024-04-23T16:57:24","modified_gmt":"2024-04-23T08:57:24","slug":"hsuhk-honorary-doctorate-lecture-series-professor-elias-shiu","status":"publish","type":"post","link":"https:\/\/www.hsu.edu.hk\/en\/hsuhk-honorary-doctorate-lecture-series-professor-elias-shiu\/","title":{"rendered":"Honorary Doctor Professor Elias Shiu discusses interest rate risk management in \u201cVisionary Wisdom\u201d lecture series"},"content":{"rendered":"
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<\/p>

15 March 2024<\/strong><\/p>

On 15 March 2024, Professor Elias Shiu Sai-wan, renowned actuarial science scholar and The Hang Seng University of Hong Kong (HSUHK) 2024 Honorary Doctorate recipient, delivered a lecture on the topic of \u201cInterest Rate Risk Management \u2013 Extending Immunisation Theory\u201d, as part of the University\u2019s \u201cVisionary Wisdom — HSUHK Honorary Doctorate Lecture Series\u201d.<\/p>

Professor Simon S M Ho, President of HSUHK delivered opening remarks, highlighting HSUHK\u2019s Word of the Year, \u201cIntelligence\u201d, and noted that in an era of economic uncertainties, we should look to intelligent minds for wisdom. By posing the question \u201cIt is said that if you want to reduce risk, diversify. Is that notion still valid in today\u2019s economic landscape?\u201d, Professor Ho introduced the discussion for the Lecture.<\/p>

Professor Elias Shiu began by explaining that he chose the aforementioned topic as the subject matter is close to his heart, given that his first job revolved around the topic of interest rate. He then introduced the roots of Immunisation Theory, and explained to the audience how the expression \u201cthere are no free lunches\u201d takes on its own meaning in the world of insurance and interest rate.<\/p>

In addition to sharing anecdotes from his time at Sunlife Insurance in Montreal, Canada, Professor Shiu explained the Redington Model, a method for managing interest rate risk which was proposed by distinguished British actuary, F M Redington, in the paper \u201cReview of the Principles of Life-Office Valuations\u201d, published in the Journal of the Institute of Actuaries<\/em> in 1952. In this highly cited paper, Redington suggests the principle that there should be equal and parallel treatment in the valuation of assets and liabilities.<\/p>

Professor Shiu also discussed the issue of asset\/liability management, presented an extension of Redington\u2019s theory, and presented a solution to the problem of interest rate risk management in the context of stochastic ordering, much to the delight of audience members.<\/p>

He also recommended several books during his lecture, including Capital Ideas: The Improbable Origins of Modern Wall Street, and Against the Gods: The Remarkable Story of Risk<\/em> by Peter L Bernstein, to students to further their knowledge in the fields of Actuarial Science.<\/p>

Professor Shiu\u2019s intricate explanations and the mathematical solutions inspired the audience members, and ended with a delightful networking session.<\/p>

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Professor Elias Shiu speaks on \u201cInterest Rate Risk Management\u201d. \n<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Professor Elias Shiu (left), President Simon Ho and Professor Chan Wai-sum. <\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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About a hundred HSUHK staff, students, and external audience attend the lecture. <\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"","protected":false},"author":53,"featured_media":60248,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0},"categories":[70,144,10],"tags":[],"topics":[228,231],"month":[387],"_links":{"self":[{"href":"https:\/\/www.hsu.edu.hk\/en\/wp-json\/wp\/v2\/posts\/60246"}],"collection":[{"href":"https:\/\/www.hsu.edu.hk\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hsu.edu.hk\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hsu.edu.hk\/en\/wp-json\/wp\/v2\/users\/53"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hsu.edu.hk\/en\/wp-json\/wp\/v2\/comments?post=60246"}],"version-history":[{"count":46,"href":"https:\/\/www.hsu.edu.hk\/en\/wp-json\/wp\/v2\/posts\/60246\/revisions"}],"predecessor-version":[{"id":61279,"href":"https:\/\/www.hsu.edu.hk\/en\/wp-json\/wp\/v2\/posts\/60246\/revisions\/61279"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.hsu.edu.hk\/en\/wp-json\/wp\/v2\/media\/60248"}],"wp:attachment":[{"href":"https:\/\/www.hsu.edu.hk\/en\/wp-json\/wp\/v2\/media?parent=60246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hsu.edu.hk\/en\/wp-json\/wp\/v2\/categories?post=60246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hsu.edu.hk\/en\/wp-json\/wp\/v2\/tags?post=60246"},{"taxonomy":"topics","embeddable":true,"href":"https:\/\/www.hsu.edu.hk\/en\/wp-json\/wp\/v2\/topics?post=60246"},{"taxonomy":"month","embeddable":true,"href":"https:\/\/www.hsu.edu.hk\/en\/wp-json\/wp\/v2\/month?post=60246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}